Just when many credit unions are catching up with member demandsfor mobile phone banking, yet another strong trend is emergingamong consumers: tablet banking.

By the end of this year, nearly 120 million Americans will betapping their tablets, and they'll be expecting their financialinstitutions to offer an app, according to industry data.

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While credit unions may be tempted to think tablet banking isidentical to other technology channels like their website andmobile phone, industry and credit union executives say the tabletchannel is different in that it can open a good opportunity toretain members and appeal to prospective young members.

So just how popular are tablets becoming? 

Consider this: In June 2012, 74 million U.S. consumers or 31% ofthe Internet population were using tablets. By the end of the year,nearly 120 million or 47% or of the Internet population will betapping on a tablet, according to research firm Frank N. MagidAssociates in Minneapolis.

What's more, Fiserv's 2012 Consumer Trends Survey showed almosthalf of tablet owners have used their devices to access theirfinancial institution's online banking services. Almost two-thirdsof those yet to access online banking from their tablets plan to doso in the future. 

By the end of this year, Austin, Texas-based Malauzi Software­estimates one in four credit unions with assets of $50 million to$15 billion will offer an iPad app. Last year, about 10% of creditunions launched an iPad app, and a few began offer it in 2011, thefirm noted.

At the $304 million McGraw-Hill Federal Credit Union in East Windsor, N.J., morethan 700 members have signed up for the iPad app launched in July.President/CEO Shawn Gilfedder expects that number to keep rising asmuch as its smartphone apps have taken off. The credit union'siPhone app users increased to 2,000 in February, up from 1,100 inFebruary 2012. Its Droid phone app users have jumped from 405 inFebruary 2012 to 983 in February 2013.

McGraw-Hill FCU has seen a 7% decrease in online banking, whichincludes desktop and laptop, usage among members, though its tabletbanking usage has increased by 7%. Gilfedder believes the twonumbers are related.

“I think it's an interesting dynamic,” Gilfedder observed. “Ourmembership is recognizing that if they can do everything they needto do on the tablet because it's very easy and very convenient,then why do they even need to go to a laptop or a desktop?”

Credit unions like McGraw-Hill FCU know it's crucial tounderstand how members are using their computerized slates in orderto improve mobile banking technology that will earn members'loyalty and attract attention of prospective members.

“You really need to think about the unique characteristics ofthe tablet,” said Bradley Scott, Fiserv's director of mobilesolutions. “You just can't take what you have on your mobile phoneand apply it to your tablet, nor can you take what you know fromwebsite design and apply it to tablet. It's got to be treateddifferently.”

Unlike the laptop, the tablet is lighter and more portable witha large-enough screen, making it easier to read and navigate than asmall smartphone screen. Instead of using a laptop keyboard ormouse to access sites, people use their fingers to tap, swipe,slide or pinch through their websites. That sense of touch somehowmakes the overall tablet experience more engaging, interpersonal,and playful than a laptop or even a mobile phone, Scott said.

In addition to the tactile navigation advantages of a tablet,Fiserv's consumer research finds credit unions should leverage thetablet's screen to present financial information throughinteractive graphics and interactive tools such as calendars andcalculators that can help engage members.

The $148 million River City Federal Credit Union in San Antonio said it launchedits iPad app at the end of February as part of its new strategy toretain and attract young members in the 18–34 year-old demographicgroup.

River City's iPad screen creates a different look when memberstap on its app to access their financial information, said EveHernandez, marketing and business development vice president forRiver City. But to create a consistent member experience, the iPadsite retains the same data and design elements that are used acrossall of the credit union's technology channels.

Hernandez sai d she was happy with the professional guidancereceived from technology partner, Malauzai, which advised thecredit union to make the most of the iPad's screen space and itsvisual appeal to engage members.

For instance, River City shows a listing of its branches on itssmartphone app. But on its iPad app, the branches are displayed ina colorful carousel graphic that allows members to rotate throughthe different images of each branch with maps, directions and otherinformation.

Other eye-appealing and interactive graphical elements on iPadinclude presenting ­pending payment transactions on a calendar anddisplaying account balances on scrolling tiles, Hernandez said. OniPhone, pending payment transactions and account balances arepresented in a simple though utilitarian list.

Another apparent advantage of tablet banking is that consumersare spending more time on a financial institution's site andlogging in with their iPad as much as their iPhones. That meansmembers are more likely to see marketing messages, said RobbGaynor, chief product officer at Malauzai.

Gaynor said iPad users are spending close to two ­minutes on afinancial institution site and about one minute and 20seconds from their banking mobile phone app. In addition, Malauzaialso found members are logging onto to their iPad credit union appabout three times a week, which is about the same for the iPhoneapp.

Malauzai's iPad app enables credit unions to feature pre-loginmarketing messages and post login marketing message after memberslog in to their accounts.

“The tactical reality is that our most effective marketing ispre-login, not post login,” explained Gaynor.